Search
 
Analysis

Would surging equity markets save multiemployer pension plans?

The prospect of freezing pension plans, which some stakeholders have suggested, could ultimately accelerate insolvency, not stave it.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Pension on a dial To account for the inherent uncertainty in forecasting economic growth, equity market returns, and interest rate volatility, SOA modeled five annual average return scenarios on projected multiemployer plan insolvencies. (Photo: Shutterstock)

The multiemployer pension plans projected to be insolvent by 2038 could benefit from sustained returns in equity markets – but even under unusually optimistic projections, most plans expected to run out of cash would still do so.

A recent analysis by the Society of Actuaries breaks down the impact investment returns have on the pending insolvency of more than 100 multiemployer plans.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

Nick Thornton

Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.

More from this author

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.